Indian indices have fallen over 5 percent in the last 6 sessions following a broad sell-off in global peers after the US Fed raised rates for the third time in a row to tame inflation, raising fears of a recession.
However, after six sessions of continuous losses, the Indian indices were positive today as investors accumulated stocks at cheaper valuations post the recent string of corrections.
This latest bout of correction has also turned the indices negative for 2022 YTD, down over 2 percent each. In the last 1 year as well, they have shed over 4.5 percent each.
The soaring dollar as a result of aggressive monetary tightening, slowing economic growth and rising demand from cautious investors are causing turbulence in the global equity market, said market experts. This is creating mayhem in the domestic market led by a weakening rupee, elevated bond yields and pessimistic trends of Asian peers, they added.
However, some stocks have managed to elude the broader market sell-off and have risen over 10 percent in the past 1 week. However, it is important to note that these are small and midcap stocks that have a higher risk quotient. Low-risk investors should avoid them. One must contact their financial advisor before investing in them. Let's take a look at these stocks:
Liberty Shoes: This stock has jumped over 30 percent in the last 1 week. Just in September so far, the stock has soared 72 percent, continuing its gaining streak for the third straight month. In 2022 YTD, it has skyrocketed nearly 90 percent, whereas it's up 72 percent in the last 1 year. In a recent filing, Liberty Shoes said that the company is confident of achieving Pre- Covid numbers in terms of revenue and profitability while the PAT and EPS are expected to be even better than Pre Covid figures. Already the first quarter figures of the current financial year have shown improved performance on all fronts including profits and there is the confidence in sustaining this trajectory. The company is all set to grow and register to show a very robust and profitable future, it added.
JTL Infra: This pipe stock has risen over 15 percent in the last 1 week. Incorporated in 1991, the firm manufactures and sells steel pipes and tubes in India. The stock has advanced 25 percent in September so far, making up for the 9 percent decline in August. In 2022 YTD, it has risen 18 percent, while in the past 1 year, the scrip has surged 35 percent. In the June quarter, the firm registered a healthy sales volume of 29,235 Metric Tonnes, up 175 percent YoY.
Sreeleathers: The footwear stock jumped over 12 percent in the last 1 week. Just in September MTD, the stock has surged 31 percent, extending gains for the third straight month. In 2022 YTD, it is up 32 percent while it added 25 percent in the last 1 year.
Vijaya Diagnostics: The healthcare scrip has rallied 11 percent in the past 1 week despite a 5 percent correction in benchmarks. The firm provides diagnostic services for patients in India. It offers laboratory services, including biochemistry, hematology, pathology, serology, cytogenetics, radiology and imaging services. the stock has also advanced 25 percent in September so far, giving positive returns for the third consecutive month, however, it has shed around 25 percent each in 2022 YTD as well as in the last 1 year.
Associated Alcohols: The alcohol stock has soared 10 percent in the last 1 week. The firm engaged in the business of manufacturing and bottling liquor. The company's brands include Black Dog Scotch Whisky, VAT 69 Scotch Whisky, Smirnoff Vodka, and Black & White Scotch Whisky, Directors Special Whisky, McDowell’s Rum, among others. The stock has gained 15 percent in September so far and is up just 2 percent in 2022 YTD. Meanwhile, in the last 1 year, it has advanced 20 percent. In the June quarter, the company posted a net profit of ₹13.4 crore, up 32 percent YoY as against a net profit of ₹10.14 crore for the period ended June 30, 2021. Its net income surged 126 percent to ₹186 crore in Q1FY23 from ₹82 crore in the same quarter last year.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.